tv On the Money With Maria Bartiromo NBC October 13, 2013 5:30am-6:01am PDT
hi everybody. welcome to "on the money." i'm maria bartiromo. the debt ceiling deback. >> caller:. is there a deal in sight? can we finally stop watching washington. what does it mean for your money? we'll talk to a hospital ceo ant unintended consequences, costs of obama care and why it matters. then a woman who has sole. she helped create the jimmy choo brand. "on the money" begins right now. >> this is america's number one financial news program, "on the money." now maria bartiromo. here is a look at what's making news as we head into a new week "on the money." at least their talking about weeks of a standoff. president obama met with house republican leaders on thursday and senate republican leaders on
friday. that to reach a deal to break the impasse over the debt ceiling and get the federal government to reopen once again. the government will run out of money this thursday if no new deal is reached. the dow skyrocketed more than 300 points on thursday. the second best day of the year. the nasdaq jumped as well. the markets continued to climb on friday. president obama announced his choice to run the federal reserve this week. it was no big surprise, janet yellen. she was born and raised in brooklyn, new york and a professor at harvard. she would be the first democrat to head the fed in 30 years and the first woman to head the fed ever. yellen must still be approved by the senate. earning season kicked off this week with two big financials reporting. jpmorgan posted a loss.
wells fargo came ahead. both companies were short on revenue. we've been watching washington dysfunction for weeks now. even though there's some hope for signs today it's been having an effect on the market and the economy. joining me is ed lazear. good to see you again. thanks for joining us. >> nigh ce to be here. >> the treasury saying we'll hit the limit of what the government can spend on thursday. now the white house is talking to senate and house republican leaders and trying to come to an agreement, it sounds. there's been a shift in tone. how do you think this ends? would serious would a breech be, by the way? >> a breech would be quite serious. i don't think we're going to default on our debt. this is a different story from the government shutdown.
we're talking about something like 5% of gdp or 20% of the government expenditure has to be financed borrowing. shutting that amount of expenditure down is a big deal. it's also a big deal in terms of what it implies for the future of the budget because we really, this is no longer about just thinking about obama care or whether we want to play partisan politics on that. in some sense that's a distraction. what we're talking about is the size of the government. these discussions are pretty serious. >> once we get back the obsta e obstacl obstacles, how much growth will we see and what impact will have been taken on the economy as a result of this? >> the government impact shutdown is, i don't want to say tiny. obviously those people who are effected now won't think it's tiny. if you look at the aggregate numbers and with the rebound
effect it's really small. at worse we're talking about reducing the growth rate from 2.1% to 2.05%. that's not a big deal. if we were to go past the debt ceiling limit, that would have significant effects. i don't think the effect on long term growth will be substantial. you asked another question which is what are the forecast for long term growth. i think we're still in a muddling along phase. there's a few good numbers we can look at in the labor market. on the whole most of this looks like the past two to three years. that looks somewhere in the 2% range, which doesn't get us back to where we need to be. >> we saw a major part of the affordable health care act rolled out at the beginning of the month. what impact is this having on the economy? >> it's hard to say. the one thing i will say is you
may be for or against the affordable care act. that has to do with other issues depending on whether you think it's a good bill or not. i think no one, well, i shouldn't say no one. almost no one believes this will be beneficial to the economy. >> last week president obama nominating janet yellen as the federal reserve. clearly his second choice after larry summers. you know her well. do you think she's a good choice? what impact will this change have on the economy? >> she's a very sensible and thoughtful person. i shouldn't say this because it will make her appear old, but she was one of my teachers when i was a graduate student at harvard. she was very much loved by the students and thoughtful person. a responsible person. obviously, she is someone who believes in fiscal stimulus and she will be probably more aggressive in that sense we've seen in the past and probably a
bit more regulation. i think she's a stable person, stable thinker. if we ever have a crisis she will be someone who does a good job of getting us through it. >> do you think there will be any change from bernanke or the same policies? >> right now we still have not begun to taper. if you say what are the policies today, if you listen to ben's words back in july and the things he said right after the open market committee meeting, he's saying i haven't seen the kind of evidence from the labor market that suggests that tapering is warranted at this point. it's not obvious to me that ben bernanke would be willing to start a significant tapering off effort right now either. i don't see janet being more likely to start tapering. that coupled with very low interest rates, i think that can be the thing we would expect for the next few months and if we
see some more positive signs in the labor market you expect janet to tighten things a bit as well. again, i think janet's basic propensity is to consider the second mandate of the fed which is employment more than inflation. she's not particularly concerned about inflation now. i think she would be very worried about doing anything that might cripple an economic recovery. >> always nice to have you on the program. thanks so much. >> thank you. great to be here. >> up next on "on the money." the patient's prescription for the roll out of obama care. what the reforming for you, your doctors' appointment and medical bills. litter, i'll bring you the story of the woman behind the brand now stepping out on her own. take a look at the stock market. back in a moment.
welcome back. the big story of this october, the other big story, the affordable care affect exchanges are finally here. starting in 2014, millions of the newly ensured americans will flood the health care system. is the industry ready or are hiccups to follow. joining me is dr. ken knit l. davis, mount sinai health systems and cyrus massoumi. how does the affordable care act and the 32 million new patients effect your respective businesses? dr. davis, you first. >> right now those 32 million haven't signed up yet. the question is how many will and will change what we do.
the macroeconomics are so overwhelming that it doesn't matter if we have the exchanges or if we didn't. state and government can't afford health care and employers can't afford the benefit package. we have to become more efficient. >> what impacts have you seen? >> there are fewer admissions. less use of the emergency room. >> how about you? >> with 32 million new patients and no new doctors we're about to have a huge access problem in this country. we have retiring baby boomer doctors. baby boomers who need more access to health care and with the 32 million people it's a perfect storm. if you look at massachusetts, they've had this health care reform since 2006, they're wait time averages from hours to 60 days. boston has the worst time to see a doctor. we believe we're about to have a
huge access problem. >> it's estimated we will be short 90,000 doctors by 2020. why aren't there enough doctors? >> huge problem. we don't have the training programs that are necessary to produce enough doctors. we're increasing the number of slots in medical schools but there's been a freeze on residency positions in the united states for more than a decade. that bottleneck is hurting us. >> if you look at, obvious lip it takes 35 years to create a doctor. that's a long lead time. mount sinai has been thinking about access being your pillar to how you think about the world. it's interesting to think about how technology can solve this. take into accounts 35 years to create a doctor. how do we solve this? that where we feels companies like zocdoc can help. we're scanning all these doctors
open appointment times. if somebody has a cancellation, we can feed that time with patient appointment. we call this the hidden supply of health care. >> mount sinai completed a partnership with continue um. 3500 beds. talk to us about that. we're seeing other hospitals partner up or out and out merge mp is this the trend due to economics or obama care? >> economics. size and scale bring better quality. to get back to what cyrus was sighing, in our system we have 6,0 6,000 doctors. 2500 are employed. we can identify who's got time and slot them right in. that doesn't happen if you're a small system. >> the network is enabling a lot more of that. do you think the affordable care act will reach its goal in terms of providing affordable quality
health care? what do you think? >> people don't know how many folk will sign up. 4.7 million people going to the health care.gov or federal exchange alone, it's clear there's bents up demand. we will improve access to health care. how big it will be remains to be seen. we'll wait till january 1st to see how big it gets. >> if massachusetts is the example, it will skds. the question is what plan will people buy and do they understand the consequences. some have high co-pays and high deduktsables. it may inhibit them from using the care they think they have. >> zocdoc is a client? >> right. >> you have to see start ups like this improver access? >> absolutely. >> when do you think we see the
results of this.gver access? >> absolutely. >> when do you think we see the results of this. when will people understand the quality or not going to the doctor because it's too expensive. >> if the metric is how many sign up, we'll know in a year. if the metric is how many are accessing care, it will take a few years. >> do you think technology is changing your business? >> absolutely. electronic health records are revolutionizing america. >> there's something like a company that's benefitted from making the chips in our mobile devices. they're backing a clinical trial where you can insert a sensor into your bloodstream and it will tell you you'll have to go to the doctor. you have to go to the doctor in two weeks. this is extraordinary what's happening with sensors. >> there's amazing applications that are being developed now like the one you discussed that have the possibility of
revolutionizining how to give ce from a difference. >> i love it. good to have you on the program. >> thank you. >> thank you so much. up next on "on the money." >> this is fantastic plan. she's called whisper. >> what's in a name. the woman behind jimmy choo is on her own. tamara mellon takes you for walk in her shoes.
welcome back. british designer tamara mellon may not be a household name but the luxury shoe brand she created is. that would be jimmy choo which was privately sold for some $800 million back in 2011. now mellon is launching a new business to get female consumers what they want, when they want it. >> i believe the consumer is far ahead of the way fashion industry works. we sell clothes in seasons. you have to buy your clothes in the wrong season. you have to buy a coat in july. nobody wants to shop like that anymore. you want to buy a coat and you want to wear it tomorrow. >> tamara mellon's new line does include coats and bags and shoes stamped with the designer's own
name, not of that of the power house she founded, jimmy choo. >> we have given them fun names. this is secret place. >> why secret place? >> i said let's have fun. i'm giving you monthly concepts of what you want to wear. it's a buy now, wear now system. >> that sense of what women want built mellons first name along with powerful name recognition. >> i lost my choo. >> i thinks like "sex in the city" was incredible. it helped us rocket. we reached hundreds of millions of people. you can do different products like fragrance or sunglasses for the people who can't buy your core products can still buy into the other products. >> your father worked for vidal sassoon and was able to have success in the power of developing a strong brand. >> the lessons were to think
outside the box. i did things in the early days of jimmy choo was that so exciting. i took the biggest cat walk in the world and we took a hotel room and i had 60 pairs of shoes in white sai satin. we invietsed managers and agents to come see what we were doing and they loved it. kate blanchett, angelina jolie. they loved it. i had someone sitting in the bathroom dyeing the shoes to match the dress. >> the man jimmy choo is a cobbler in london who she paid. building it in 1986 is the story she tells in her new memoir. >> wow walked away from the job with 135 million.
why leave? >> it was my baby.hw walked awab with 135 million. why leave? >> it was my baby. i've been through three deals and a luxury group. it felt like being a guest in your own house at the end. they buy shares. they have a 30% internal rate of return. as soon as they hit that, they're out. it's like fattening the big for the slaughter. it's not considering the long term viability of the brand. >> so many entrepreneurs this resonates with. they've been down this road as well. what changes for you now? you own this new brand out right. >> i have the luxury choosing who my investors are and i've been choosing people who are entrepreneu entrepreneurs. >> are you trying to create another big luxury brand and at some point take this company public? >> that could be a great future. my first concern is i want to create amazing luxury products
for women. >> this is a boot. >> it's a shoe boot. >> it's all the way up to the waist. >> this is a legging boot. it's up to the waist. this is the revenge boot. i work really hard on the comfort because i know what it feels like. i like to have innovation that really works in a woman's life. >> from her shoe room above madison avenue she hopes her boots lure the female shopper and make jimmy choo a success and stay for the 21st century. >> clearly i have a track record now. the fund raising was different from the first time. the only person i could get money from was my dad and it was only 150,000 pounds to start with. >> where do you get your ideas? what triggers them? >> it can be anything. architecture, music, art, people. the best idea is usually in the bath. >> in the bath?
for more on our show check out the website. i hope you'll follow me on twitter and google plus. let's look at the stories coming up in the week ahead that may move the markets. we're in for a heavy week of earnings. they will report their third quarter. as will bank of america and citi. we'll hear from google and ebay. monday is columbus day. the bond markets and the banks will be closed. the beige book will be released. finally, have you seen this man? police in new york are asking for the public's help in solving the disappearance of this normal rockwell pantsing. it appeared oen the post in 1939 and sold for a million dollars at auction.
the pantsing, one of the 300 some covers rockwell did was about to be shipped to the new owner when it was discovered missing. the missing begs the question, where would an art thief had a million dollar piece of americana. my guest next week susan somers. keep it right here where we're on the money. have a great weekend.
good morning. losing hope. talks over proposals to end the government shutdown break down in the house, leaving a potential resolution up to the senate. a rare sunday session is planned for today. but will it end with a deal. mystery in new mexico. several tns from a ranch at at-risk youth still missing this morning. nearly 48 hours after they disappeared. this, as investigators look into allegations of abuse against the owner of that ranch. and the controversial actor now says he's out. we'll tell you why, sunday, ost 13th, 2013.